The agreement has been formed in response to heavy competition from overseas firms, with the EEF voicing concerns over the decline in overseas orders for UK manufacturing services due to competitive pricing in foreign markets and a strengthening pound. The UK invests just 1.1% of GDP on R&D compared to 1.6% across the EU and 2% in Germany.
Chris Shield of Shield Group, said: “Recent reports have focused on UK manufacturers losing out to emerging markets but this is not a foregone conclusion. We have demonstrated that we can outperform emerging markets on price by using smart machining techniques and investing in the latest machining technology.”
But through superior manufacturing techniques and a network of global partners the collaboration between Lontra and Shield is expected to breathe new life into Britain’s manufacturing sector, while providing it with a platform for international growth.
Today’s announcement brings together Shield’s value added manufacturing techniques with Lontra’s clean-sheet compressor design and R&D facilities. The partnership further cements the reputation of the Midlands area as a key manufacturing hotspot in the UK, revealing the importance of local business collaboration as Britain looks to restore its global dominance within the sector.
Steve Lindsey, founder and CEO of Lontra, said: “Shield Group engineers will be able to provide us with invaluable input into streamlining the design of our product, improving the consistency of parts to further improve compressor reliability, and lowering the overall cost of production.”